SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: ryanaka who wrote (377997)7/23/2018 1:10:15 PM
From: Sun Tzu  Read Replies (3) | Respond to of 542941
 
That is a common misunderstanding. Banks don't make their money based on the interest rate. They make their money based on the *difference* between their borrowing cost vs their lending. This delta remains fairly constant. On the other hand, high interest rates lower the demand for loans, which lowers their sales volume (while keeping the margins the same) and result in a net *lower* profits.



To: ryanaka who wrote (377997)7/23/2018 1:30:03 PM
From: zzpat  Read Replies (1) | Respond to of 542941
 
Can't we look at bank loans? Loans are creeping back up after a significant drop after Trump was elected. The bad news is they're very low compared to other expansions. This is the second longest recovery in history and banks are still squeezing the economy.



HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News